January 17, 2011 Here is a summary of the new mortgage rules announced this morning. The new measures will reduce the maximum amortization period to 30 years from the 35 years for new government backed insured mortgages with loan to value ratios of more than 80 per cent. This new measure will significantly reduce the total interest payments Canadian families make on their mortgages and allow them to build up equity in their homes more quickly. The maximum amount Canadians can borrow to refinance their mortgages will change from 90% to 85% of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers. The withdrawl of government insurance backing lines of credit secured by homes such as home equity lines of credit. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to home purchases are managed by the financial institutions and not borne by the taxpayers. The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawl of government insurance backing lines of credit secured by homes will come into force on April 18, 2011. November 09, 2009 CMHC October Housing Starts in Vancouver According to the Canada Mortgage and Housing Corporation (CMHC), October was another encouraging month for housing starts. Some 892 nre residential homes were begun, the second highest number of starts this year. Surrey led with a total of 383 housing starts, followed by Coquitlam where foundations were poured for 139 new homes. "Even thought year-to-date numbers for 2009 are still far below those recorded in 2008, the momentum of increase over the past threee months is heartening. Single-detached home construction continues to show strength, especially in Surrey. We are beginning to see a return of some larger scale multiple-unit residential projects, which were virtually absent during the earlier part of this year", said Robyn Adamache, Senior Market Analyst, CMHC. "CMHC is forecasting a modest increase in housing starts in 2010." April 22, 2009 What the rate cut means for mortgages - Financial Post The lastes rate cut means consumers buying a house can borrow for as little as 3% interest on their loan if they are willing to buy into the Bank of Canada's statement yesterday that it won't be changing rates unti June 2010. If you don't believe the bank will hold steady on its promise, you can lock into five year fixed rate mortgages for as low as 3.85% on a discounted basis, the lowest rate in Canadian history. Mortgages taken out just 2 years ago were in the range of 5.75% and some Canadians might be ready to take the penalty to refinance these mortgages. The penalty to break an existing mortgage is the greater of three months interest or what is call the interest rate differential. The interest rate differential is the lost interest between your current rate and market rates. From the Globe and Mail March 13, 2009 Vancouver detached house prices are the lowest they have been in two or three years, say one couple convinced that the time is ripe to purchase. Judging from the many shoes littering the front porches at open houses in recent weekends, it's clear that people are back buying houses. Without a doubt, the market has picked up, and we're barely into March. It's a far cry from the abysmal real estate market of last fall to January this year. According to the Real Estate Board of Greater Vancouver, residential housing sales were up 94 per cent last month compared with January. This translates into 1,480 sales for the month of February alone. January on the other hand, was a record-setting sluggish month - the slowest for housing sales in 25 years. The growth defies the sky-is-falling pronouncements that have made headlines since September las year. But rhere is a growing perception that it's a buyer's market. A recent RBC/Ipos Reid poll revealed that 26 per cent of B.C. residents surveyed believed they would purchase a home in the next two years, despite the veiw that house prices will continue to fall over 2009. March 03, 2008 From the desk of Erick Ong Mortgage Broker for Invis 604-889-1535: The Bank of Canada reduced its key interest rate by half a point to its lowest level ever. The bank has cut this key rate by four percentage points since December 2007. In its annoucement the Bank stated that this rate is to remain at its current level or lower until there are "clear signs" that the economy is recovering.
The bank alos noted that "The effects of the recent agressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010. Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies." Erick an Invis mortgage professional can explain current trends in interest rates, and their effect on mortgage pricing. Those with existing variable rate mortgages will benefit directly - these mortgages are linked to the prime rate. From Newsweek magazine dated Feb 16, 2009 Guess which country alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it's Canada and in 2008 the World Economic Forum ranked Canada's banking system the healthiest in the world. America's ranked 40th, Britian 44th. Canada has done more than survive this financial crisis it is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank for example was the 15th largest bank in North America one year ago, now it is the fifth largest. It hasn't grown in size, the others have all shrunk. If President Obama is looking for smart government, there is much he and all of us could learn from our quiet and sometimes boring neighbour to the North. Meanwhile in the councils of the financial work, Canada is pushing for new rules for financial institutions that would reflect its approach. This strikes me as well a worthwhile Canadain initiative. Feb. 17, 2009 More bang for your buck! Did you realize that this is the right time to make that jump into the real estate market! A home worth $500,000 1 year ago is now worth 15% less and is now valued at $425,000. The 5 year mortgage rate last year was 5.64% versus 4.34% a savings of 1.3%. Buying today will save you $778.22 in monthly mortgage payements or make the same payment as in 2008 and pay off your mortgage in approximately 16.5 years! |